Life is returning to newbuilding market as shipowners start to seek investment opportunities with new owners emerging in the market

Amid plummeting newbuilding prices, the industry started to abruptly pick up since December last year but relatively new players are ordering newbuildings including ship funds looking for investment opportunities.

In contrast, leading global shipowners, which had splashed out much money for newbuildings in boom years, do not appear to have war chest to invest in new ships now.

Italy’s Coeclerici Group has ordered newbuildings for the first time in a long time. It has signed two self-unloading 55,000-dwt bulkers at China’s Jiangsu Hantong Ship Heavy Industry for around $60m each with delivery set for May and October 2011.

The move marks the first major reinvestment in shipping since Coeclerici handed over the baton as Italy's largest bulk operation with the sale of its bulker activities to the Livanos group in the summer 2003.

Greece’s Polembros Shipping, which in early this month ordered capesize pair at Sungdong Shipbuilding & Marine Engineering in South Korea for delivery in 2011, had been absent in the newbuilding market for many years.

It also penned two 82,000-dwt bulkers at South Korea’s SPP Shipbuilding in December last year for reportedly $35.5m each with delivery scheduled in 2011.

Hong Kong’s Teh Hu Cargocean Management, which had not placed newbuilding orders in the past boom years, signed a contract to build an 180,000-dwt bulker with an option for one more at Sungdong last month.

Greece’s P&A Group also seems likely to return to ordering newbuildings with around 30,000-dwt bulkers in mind.

Less famous Turkish shipowners are also placing new orders. Early last week Densa ordered two plus two 57,000-dwt bulkers at STX Offshore & Shipbuilding for delivery in 2011 for $130m in total. Ciner ordered four 35,200-dwt bulkers at Korean shipbuilder Samho Shipbuilding last month for about $110m for delivery in the first half of 2011.

Moreover, an increasing number of investment funds are being established eyeing ship purchases amid a dramatic fall in newbuilding prices.

Source: Asiasis

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